Answer the Question. -You Currently Drive 360 Miles Per Week in a Car

Multiple Choice

Answer the question.
-You currently drive 360 miles per week in a car that gets 20 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after trade-in on your current car) that gets
60 miles per gallon. Insurance premiums for the new and old car are $900 and $600 per year,
Respectively. You anticipate spending $1400 per year on repairs for the old car and having no
Repairs on the new car. Assume gas costs $3.50 per gallon. Over a five-year period, is it less
Expensive to keep your old car or buy the new car? By how much?

A) the new car is $3120 less expensive
B) the old car is $3120 less expensive
C) the new car is $4420 less expensive
D) the old car is $4420 less expensive